Kia 2013 Annual Report Download - page 14

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
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

In 2013, the domestic car market was difficult, with
stagnant demand and increasing competition from import
brands.
Nevertheless, Kia Motors strived to overcome these
challenges by improving the product competitiveness
of its flagship models and introducing two new models,
Carens (Rondo) and Soul. Despite these efforts, however,
domestic sales totaled about 458,000 units, down 4.8%
year-on-year.
However, Kia Motors was able to maintain a market share
of about 30%, thus upholding its leading position in Korea.
93,641 units of the Morning (Picanto) were sold, making
it the best-selling compact car in Korea for the sixth year
in a row. Our compact K3 family was also expanded to
include a sedan, hatchback, and diesel offering which led
to total K3 sales of 51,369 units. Meanwhile, 62,665 units
of the K5 (Optima) and 24,999 units of the K7 (Cadenza)
were sold, proving again the popularity of the K-series. Kia
Motors also released hybrid versions of the refreshed K5
(Optima) and K7 (Cadenza) in line with its position as a
leading eco-friendly car company.

The domestic car market is expected to remain
challenging again in 2014, especially as imported car
brands are likely to implement aggressive price reduction
policies due to FTA (Free Trade Agreement) tariff cuts.
However, a recovery in the domestic economy should help
consumer sentiment. A new generation of the Carnival
(Sedona) MPV will be introduced for the first time in eight
years, and we also expect good performance from the
next generation Sorento, which will be launched in the
second half of 2014.
In April 2014, Kia will release the Soul EV, a highly efficient,
high-performance electric vehicle based on Kia Motors’
design icon, the Soul. The key parts are all produced
domestically, which will result in competitive pricing.
The Soul EV will feature a unique design, outstanding
performance, and strong price competitiveness, and is
therefore expected to be an important part of the electric
car market.
With these bright prospects for the year ahead, Kia has
set a domestic sales target of 480,000 units for 2014, a
year-on-year increase of 4.9%. To reach this target, Kia
will pay close attention to any changes in the business
environment, take pre-emptive measures in any crisis
situation, strengthen sales and marketing, and enhance
brand image. By turning the current challenges into
opportunities for new growth, Kia will be able to expand its
share of the domestic market and profitability.
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
(Unit: Thousand units)
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2012
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2013
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2011
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